CHIPPED timber exports from the region could decrease, with the Federal Government announcing a $1.3m grant to research local production of construction materials from the low-value product.

The Agricultural Trade and Market Access Cooperation (ATMAC) program grant was announced by Member for Wannon Dan Tehan and Mt Gambier-based Member for Barker Tony Pasin from the Portland Trawler Wharf on Tuesday, and the project will be led by the Forest and Wood Products Australia (FWPA) in partnership with the Green Triangle Forest Industries Hub (GTFIH) and the Australian Forest Products Association.

Currently young radiata pines, the hearts of pine logs, and sections of the logs where branches grow, as well as all blue gums (Eucalyptus Globulus) grown in local plantations is chipped and shipped overseas.

South Australian Forestry Products Association chair Tammy Auld said the project’s main aim was to figure out the best suited high value construction hybrid products that could be made from these materials.

“From an industry point of view, we've been suffering a little bit of light with limited opportunities for domestic processing for low value, rougher grade products.

“What this announcement means is that we can explore further opportunities for value adding of that product here in Australia, where we traditionally have only had export markets for that product as a pulp grade.”

Ms Auld said that while there was a difference in regulation of land use between the two states, there is little difference in terms of processing timber, and the project would benefit each side of the border equally.

“For the industry here, it's very new, we've done a lot of Radiata engineered wood products in this region before, but we haven't done a lot of engineered products with the Eucalyptus.”

“It applies to every grower in the region, and even the sawmills, they’re already producing certain products that could go into these, so I think that's got the full support of everyone in every different component across the industry.”

The new products are hoped to help alleviate pressure on the construction industry, but it will be some time though before the industry sees results from the grant, with Ms Auld expecting the research stage to be a few years of work, and at least a year to get manufacturing facilities up and running.

Though that may still be in time to help with timber supply issues, with a recently released interim report by federally funded FWPA finding Australia has not been able to source around 20% of its housing requirements locally, and reliance on imports was likely to double by 2050.

In 2020 Timber product company Timberlink Tarpeena in South Australia was chosen over other SA and Victorian locations as the site for a multi-million dollar state-of-the-art CLT (Cross Laminated Timber) and GLT (Glue Laminated Timber) manufacturing facility.

The facility is set to be completed next year, and will support 50 jobs when fully operational, the company said.

GLT’s and Laminated Veneer Lumber (LVL) are becoming commonplace in construction, usually used as beams or columns, while GLT’s are a newer development, with properties more similar to concrete.

Mr Tehan, who is the minister for trade, said the project would help the forestry industry deal with the impact of trade disputes between the Australian and Chinese government, which has resulted in Beijing banning log imports.

He said the new technology could be a key solution to the shortage of timber products used in the construction industry, but is also eyeing off the export market for the product.

“We obviously want to serve the domestic market, but we also want to look for opportunities to export as well and that's where this will help and support opening markets in Malaysia, Vietnam, Indonesia and India now with that with the (free trade agreement).”

Mr Pasin says that for him, the project means jobs for people in his electorate.

 “Increasingly they're being substituted for steel and concrete, and construction works. There's a global shortage of these hybrid engineered wood products and we want to meet that demand.”

“We will see increasingly, forest wood products businesses moving away from low value fibre offerings like wood chips and exporting logs to engineering solutions, particle board, and cross laminated and glue laminated timber.”

GTFIH executive general manager Liz McKinnon said the project has been developed following an industry wide wood flow study, and the Government money is “vital”.

The GTFIH membership has committed a further $110,000 cash, as well as in-kind support including staff time and mill operations valued at more than $468,000.

“The focus is on creating new hybrid wood products, combining these two fibres to make stronger timber and in turn meet growing domestic and international demand, which we know is going to quadruple by 2050.”